TN 8 (05-95)

GN 05010.210 Determining Overpayment Amounts

A. Procedure

1. Computing Total Overpayment

Compute the total overpayment by comparing MBC paid to MBC which should have been (S/H/B) paid, without regard to any tax withheld.

Use underpayments to reduce total overpayment amounts without regard to the tax status of the individual to whom the underpayment is due (that is, in the same way as in a case which does not involve taxation).

Use tax refunds due for the current year to reduce the overpayment as explained in GN 05010.250.

2. Computing Amount to be Recovered

Subtract the amount which should have been paid to the beneficiary for the month(s) in question from the amount paid to the beneficiary for those months.

NOTE: In computing the amount paid to a beneficiary, include any excess benefits withheld for taxes for an overpayment month(s) and repaid by SSA or IRS. (SSA assumes IRS paid prior year refunds.)

B. EXAMPLES

1. Overpayment

A, a nonresident alien, is entitled to RIB of $400.00. After tax ($102.00) is withheld, she receives a check for $298.00 a month. In 9/95, it is determined she was not entitled to the benefits she received for 6/95, 7/ 95 and 8/95 because of her work outside U.S.

The overpayment and the amount A is asked to repay are computed as follows:

Month
Check

Paid

MBC

PAID

MBC

S/H/ B

Paid

Check

S/H/B

Paid
 
6/95$298.00$400.0000  
7/95298.00400.0000  
8/95 298.00 400.00 00  
 $894.00$1,200.0000 
MBC Paid:$1,200.00
MBC S/H/B Paid:   - 0.00
Total Overpayment:1,200.00
Checks Paid:$894.00
Checks S/H/B Paid:   - 0.00
Beneficiary Asked to Repay894.00

2. Excess Payment and Additional Payment Due

Same as example 1, except in 9/95 it is determined A's monthly benefit should have been $500.00 effective 4/95. The overpayment and the amount A is asked to repay are computed as follows:

Month
Check

Paid

MBC

Paid

MBC

S/H/B

Paid

Check

S /H/B

Paid
 
4/95$298.00$400.00$500.00$372.50  
5/95